Question

The general ledger of Red Storm Cleaners at January 1, 2021, includes the following account balances:

Accounts	Debits				Credits
Cash	$	13,000
Accounts Receivable		6,600
Supplies		2,600
Equipment		17,000
Accumulated Depreciation					$	5,800
Salaries Payable						8,300
Common Stock						18,000
Retained Earnings						7,100
Totals	$	39,200			$	39,200

The following is a summary of the transactions for the year:

1.		March		12		Provide services to customers, $46,000, of which $19,600 is on account.
2.		May		2		Collect on accounts receivable, $16,600.
3.		June		30		Issue shares of common stock in exchange for $4,000 cash.
4.		August		1		Pay salaries of $8,300 from 2020 (prior year).
5.		September		25		Pay repairs and maintenance expenses, $11,600.
6.		October		19		Purchase equipment for $6,600 cash.
7.		December		30		Pay $1,200 cash dividends to stockholders.

The following information is available for the adjusting entries.

Accrued salaries at year-end amounted to $17,500. Depreciation for the year on the equipment is $3,600. Office supplies remaining on hand at the end of the year equal $1,100.

Create a balance sheet

Answer 1

Red Storm Cleaners
Balance Sheet
At January 1, 2021
Assets
Particulars	Amonut
Non Current Asset
Equipment(net of depreciation)	$              14,200
Current Assets
Cash and cash equivalents	$              32,300
Accounts Receivable	$                9,600
Supplies	$                1,100
Total Assets	$              57,200
Liabilities and Shareholders Equity
Shareholders Equity
Contributed Capital	$              22,000
Retained Earnings	$              17,700
Total Shareholders Equity	$              39,700
Non Current Liabilities
Long term notes payable
Total Non Current Liabilities	$                         -
Current Liabilities
Salaries Payable	$              17,500
Total Current Liabilities	$              17,500
Total Liabilities and Shareholders Equity	$              57,200